1 . Twice your money back , yes twice says an advert if you believe it and invested $1000 the firm promised 8 equal installments $250 and you are borrowing money from a secondary lender at 13% what is your IRR

2 . Jay would receive $4000 from an estate when he is 25 . He just turned 18 and wish to have the funds now so he is willing to sell his right to a third party . If the later discount rate is 18% how much would he receive ?

3 . supposed Nancy is immediately entitled to an annuity of $1500 in perpetuity , what is the present value - the maximum value she would receive if she want to sell it? You can use a 16% interest rate .

4 . Thomas buy $1000 in corporate junk bond with a nominal interest rate of %13 that pays the coupons annually (you hope ) if he can re invest at the same rate without no transaction cost what would be his investment growth after 15 years ?